India Boosts Foreign Currency Mobilization Amid Global Uncertainty

Finance Minister Nirmala Sitharaman has urged Public Sector Banks and Financial Institutions to enhance outreach to the NRI diaspora for foreign currency mobilization. With encouraging responses from NRIs globally, schemes like FCNR(B), ECBs, and OFCBs promise strong foreign exchange inflows, fortifying India's reserves during uncertain times.

In an effort to bolster foreign currency inflows, Union Finance Minister Nirmala Sitharaman has called on Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) to increase engagement with the non-resident Indian (NRI) diaspora. Sitharaman spoke with managing directors and CEOs of these institutions, urging adherence to Reserve Bank of India's (RBI) swap schemes.

The response from the Indian diaspora has been notably positive, the Finance Ministry reported. There is considerable interest from NRIs in regions such as Singapore, Hong Kong, and the United States. Banks are offering attractive returns on dollar deposits, facilitated by lifted interest rate ceilings on new FCNR(B) deposits.

Plans were discussed to sustain this momentum, capitalizing on the positive response. Officials are pushing for accelerated deposit mobilization and stronger external commercial borrowings in the upcoming months. GIFT City's International Banking Units are tapped for global fund mobilization, with robust monitoring by the RBI enhancing transparency and tracking progress.